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An employee handbook is a document that communicates your company's mission, policies and expectations. Employers give this to employees to clarify their rights and responsibilities while they're employed with the company.
Though not required by law, employers should make every effort to receive signed handbook acknowledgments from all employees when first hired and at any time the handbook is updated.
Montana is the only state in the U.S. that is completely not at-will. All other states in the U.S. have some version of at-will employment. In Montana, employers can practice at-will employment during a probationary period only. Other states do have exceptions to at-will employment.
The offer letter, handbook and other documents do not constitute an employment contract. A statement regarding employment is at will and either party may terminate employment at any time, and for any reason provided that no local, state or federal laws are violated.
The three major common law exceptions are public policy, implied contract, and implied covenant of good faith. The at-will presumption is strong, however, and it can be difficult for an employee to prove that his circumstances fall within one of the exceptions.
Unlike virtually all U.S. jurisdictions, Virgin Islands law incorporates an exception to the common law employment-at-will doctrine for certain categories of nonunionized private sector employees.
A rule that employee handbooks and their contents are confidential and may not be disclosed to third parties violates the Act, unless tailored to protect specific employer proprietary information unrelated to terms and conditions of employment.
The employee handbook can help protect your business against employee lawsuits and claims, such as wrongful termination, harassment and discrimination. The handbook is also a crucial introduction to your business for new hires, providing insights for new hires to understand your mission and values.
Employee handbooks are also used as a way to protect the employer against certain claims, such as unfair treatment claims. Unless the text of an employee handbook clearly indicates otherwise, an employee handbook can be considered a legally binding document between an employer and their employees.